🔔 Rates Rundown: best buy activity slows as providers brace for ISA impact

The end of the current tax year looms large for providers and savers alike, as the scramble to make the most of the 2018/19 ISA allowance reaches a crescendo.

Perhaps expecting an influx of ISA applications within the next week, a number of banks and building societies have taken their feet off the pedal, sticking with their current offerings rather than trying to grab the headlines with attractive new deals.

However, that is not to say that there aren’t plenty of competitive options for those looking for a new home for their savings.

PCF Bank, in one of the few noteworthy moves of the week, relaunched its two year fixed rate bond, topping our table and standing out from the crowd by also offering a postal application option.

>> What are the best fixed rate bond rates currently?

Meanwhile, Sharia compliant accounts continue to offer competitive rates – in some cases higher than the standard fixed rate equivalents - so could also be worth a look.

>> Sharia fixed term account best buy table

Few changes to report amongst the easy access best buys, though Tesco Bank has returned to our top five this week with an improved offering.

>> Latest easy access best buys

Finally, for those looking at cash ISAs, we run through the top options available for last minute applications for the current tax year or for those starting to plan for the next one.

A word of warning though, some providers have already withdrawn their ISA offerings for this tax year and others have early deadlines in place – so, take a look at our best buy tables, where we have collected this information for you.

>> Top-paying fixed rate cash ISAs

>> Top-paying variable rate cash ISAs

For an overview of the whole savings market and to look at the top options in all categories, make sure you consult our independent best buy tables and if you want to keep up to date with best buy rates as they hit the market, sign up to our Rate Alert emails.

Fixed Rate Bonds

There was a new market leader in our two year fixed rate bond table this week, in the form of PCF Bank. The relaunched account pays 2.26% gross/AER and can be applied for either online or by post, for those that prefer a more traditional application route.

Talking of postal applications, also new to our top five this week was Close Brothers Savings. Just shy of the leader at 2.25% gross/AER, this is another account that can be applied for via pen and ink.

Amongst shorter-term bonds, Shawbrook Bank (1.97% gross/AER) remained at the top of our one year best buy table for another week.

Longer-term bonds are dominated by Raisin UK exclusive products through AgriBank, which lead the respective tables by a significant margin.

>> 3 Year Fixed Term Deposit at 2.64% gross/AER*

>> 5 Year Fixed Term Deposit at 3.05% gross/AER*

It is worth noting that deposits placed in these accounts are not protected by the UK Financial Services Compensation Scheme (FSCS) – instead funds are covered by the Maltese Depositor Compensation Scheme up to the equivalent of €100,000 per person.

In addition to the rates on offer, a welcome bonus of up to £100 is on offer for new Raisin UK customers.

>> Find out more about Raisin UK

For full information on each of these accounts and for a range of other options, please refer to our full fixed rate bond best buy tables.

Sharia Fixed Term Accounts

Sharia accounts continue to pay some of the best returns on the market, so are worth closer inspection if you are looking for a fixed term account.

Gatehouse Bank is still offering competitive two year, three year and five year fixed term accounts.

>> 2 year Fixed Term Deposit: 2.45% gross/AER*

>> 3 year Fixed Term Deposit: 2.50% gross/AER*

>> 5 year Fixed Term Deposit: 2.75% gross/AER*

These accounts are also available through the Raisin UK savings platform, where a welcome bonus of up to £100 is available for new customers – as mentioned earlier.

>> Find out more about Raisin UK

For those looking for a shorter term, BLME is top of the pile, paying 2.20% gross/AER – head and shoulders above the rest of the one year fixed term market.

Al Rayan is also in amongst the top rates, matching Gatehouse Bank for three years (2.50% gross/AER) and offering a competitive 18 month option, which pays 2.30% gross/AER.

Please refer to our Sharia fixed term accounts best buy table for more information on the accounts above.

>> How do Sharia compliant accounts work?

Easy Access Accounts

The main change of note this week came from Tesco Bank, returning to our easy access best buy table.

The new version of its Internet Saver account pays 1.46% gross/AER, sitting next in line after the leading trio of providers. It is worth noting that the headline rate does include a 0.91% bonus for the first year.

The leading trio consists of Kent Reliance, Virgin Money and Marcus by Goldman Sachs, which each pay 1.50% AER.

For some, the account from Kent Reliance may have the edge over its rivals, as it offers no restriction on the number of withdrawals you can make in a year - unlike Virgin Money.

It also has no introductory bonus included in the rate – in contrast to the account from Marcus.

Further information on the leading accounts can be found in our easy access best buy table.

Fixed Rate Cash ISAs

With some providers pulling back from the best buys in order to stem the flow of ISA applications, it is perhaps little surprise that we haven’t seen wholesale changes in the fixed rate cash ISA best buys.

That said, there are plenty of competitive options to choose from as we approach the end of the tax year.

Shawbrook Bank leads the way for one year (1.77% tax free/AER), while Charter Savings Bank dominates proceedings for both two and three years - paying 1.95% tax free/AER and 2.05% tax free/AER respectively.

For those looking for an even longer term, Shawbrook Bank and United Trust Bank lead the way for five years, both providers paying 2.30% tax free/AER.

To view our top five accounts across the full range of terms, please refer to our fixed rate cash ISA best buy tables.

Variable Rate Cash ISAs

There was also little change amongst variable rate cash ISAs, with the top options remaining in place.

Santander remains top amongst easy access ISAs. The ISA is paying 1.50% tax free/AER - although it is only available to new and existing 1|2|3 World or Santander Select customers.

Next in line is Yorkshire Building Society, with its Single Access Saver ISA that is paying a competitive 1.46% tax free/AER.

The main factor to be aware of with this account is, as the name suggests, you are only able to access your money on one day over the first year, so may not suit everyone.

Available to all and without withdrawal restrictions is Paragon’s latest offering, which is paying 1.45% tax free/AER.

For further information on these accounts and the rest of our top five, please refer to our variable rate cash ISA best buy table.

If you would like any help with your savings, why not give one of our Bath-based experts a call on 0800 011 9705, we’d love to hear from you.

*We are occasionally paid by some providers if you click through from our Best Buy Tables and open a savings or current account with them. We will never accept a payment that compromises in any way our independent, whole of market approach to providing information on savings products. For clarity we will indicate those companies who remunerate us with an asterisk (*).

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